Small Business Blog Informations Learning Ideas

Written on July 23, 2008 – 9:52 am | by wanature |

Deciding a new small business need such an effort to make your decision is right and profitable for the future. Getting to know to the business circumstances you will jump in is required to make you understand what you should have to be. A simple SWOT business analysis tool maybe can help you to solve this problem.

SWOT analysis as a business analysis tools is one method you can use to identify how strong and weak of your ability to be in the  business and how hard the competition out there. By analyzing this factor you could make such a map of where you are now in the business you will jump in and what should you do to win the competition.

SWOT stand for Strengths , Weaknesses , Opportunities , and Threats . This method is usually used by corporates to mapping their ability and competition. I think it is also a good way for people who finds a new business and don’t know where should start. Here you will analyze yourself or your organization to the business you will run.

By this simple SWOT analysis you could make a whole picture and using the data to know :

1. Where you are at the moment
2. How you maximize your strength
3. Minimize the weakness
4. Get the benefit of the opportunity
5. To avoid the threats

Here the scheme of SWOT business analysis tool

SWOT Analyze Strengths And Weaknesses

Take a piece of paper and start analyze your Strengths, Weaknesses as internal factor or has correlation with yourself or your organization. Be honest to yourself and write down all what your strengths and weaknesses you have. Your strengths and weaknesses could be your skills, your finances, your network, your knowledge to the business, location, tools you have.

SWOT Analyze Opportunities And Threats

Analyzing Opportunities and Threats as external factor requires information from some sources to gathered. Newspaper, magazine, internet can be a good source of information. Gather all information related to the updated development of the business. Find data of external conditions that are helpful to achieving your objective as Opportunities.  And sort data of external conditions which could damage to your business’s performance as Threats. Legal, political, demand, trend of business, competition can be classified as opportunities and threats. Sort of the data which classified into opportunities an threats. The positive data could be classified into opportunities, such growth of demand is an opportunities, but economic crisis due to oil price could be into threats. It is better if the data you collect showing the number to make it more detail.

Using this simple SWOT business analysis tool you can make a decision where and how you will start you new small business or how you will drive your existing small business.